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GLOBAL E BUSINESS AND COLLABORATION

BUSINESS PROCESSES AND INFORMATION SYSTEM


In order to operate, businesses must deal with many different pieces of information about
suppliers, customers, employees, invoices and payments, and their products and services.
Information systems make it possible for firms to manage all their information, make better
decisions, and improve the execution of their business processes.
Information systems automate many steps in business processes that were formerly
performed manually, such as checking a clients credit, or generating an invoice and shipping order.
But today, information technology can do much more. New technology can actually change the flow
of information, making it possible for many more people to access and share information, replacing
sequential steps with tasks that can be performed simultaneously, and eliminating delays in decision
making. New information technology frequently changes the way a business works and supports
entirely new business models.
TRANSACTION PROCESSING SYSTEMS
A transaction processing system is a computerized system that performs and records the
daily routine transactions necessary to conduct business. The principal purpose of systems at this
level is to answer routine questions and to track the flow of transactions through the organization.
Managers need TPS to monitor the status of internal operations and the firms relations with the
external environment.
BUSINESS INTELLIGENCE SYSTEMS FOR DECISION SUPPORT
Management Information Systems (MIS) designates a specific category of information
systems serving middle management. MIS provide middle managers with reports on the
organizations current performance. This information is used to monitor and control the business
and predict future performance.
In contrast, decision-support systems (DSS) support more non-routine decision making. They
focus on problems that are unique and rapidly changing, for which the procedure for arriving at a
solution may not be fully predefined in advance.
Executive support systems (ESS) help senior management make these decisions. They
address non-routine decisions requiring judgment, evaluation, and insight because there is no
agreed-on procedure for arriving at a solution. ESS present graphs and data from many sources
through an interface that is easy for senior managers to use.
SYSTEMS FOR LINKING THE ENTERPRISE
Enterprise applications are systems that span functional areas, focus on executing business
processes across the business firm, and include all levels of management.
There are four major enterprise applications:
ENTERPRISE SYSTEMS
Enterprise Systems, also known as enterprise resource planning (ERP) systems,
integrate business processes in manufacturing and production, finance and accounting, sales
and marketing, and human resources into a single software system.

SUPPLY CHAIN MANAGEMENT SYSTEMS


Firms use supply chain management (SCM) systems to help manage relationships
with their suppliers. The ultimate objective is to get the right amount of their products from
their source to their point of consumption in the least amount of time and at the lowest
cost.
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS
Firms use customer relationship management (CRM) systems to help manage their
relationships with their customers. CRM systems provide information to coordinate all of the
business processes that deal with customers in sales, marketing, and service to optimize
revenue, customer satisfaction, and customer retention.
KNOWLEDGE MANAGEMENT SYSTEMS
Knowledge management systems (KMS) enable organizations to better manage
processes for capturing and applying knowledge and expertise. These systems collect all
relevant knowledge and experience in the firm, and make it available wherever and
whenever it is needed to improve business processes and management decisions.
THE INFORMATION SYSTEMS FUNCTION IN BUSINESS
The information systems department consists of specialists, such as programmers, systems
analysts, project leaders, and information systems managers.
There are many types of business firms, and there are many ways in which the IT function is
organized within the firm. A very small company will not have a formal information systems group.
Larger companies will have a separate information systems department, which may be organized
along several different lines, depending on the nature and interests of the firm.